The present invention relates to conducting secure transactions over a network. In particular, the present invention relates to a system and method for conducting secure transactions over a network in which the identity of a party to the transaction is verified.
Computer networks, such as the Internet, are used for a variety of commercial activities, such as banking transactions, stock trading and the purchasing of goods and services. The Internet in particular provides a vast new market, and significant new opportunities, for a wide variety of businesses.
A common method for conducting business transactions over the Internet, or over other computer networks, is to use a credit card to authorize and pay for the goods or services. A consumer, typically using a personal computer, cell phone, personal digital assistant (PDA) or other communications device, electronically connects to a provider of the goods or services. Using browser software, the consumer then reviews the provider's website, selects particular goods or services for purchase, and then provides personal and financial information to complete the transaction. Completing the transaction typically involves entering a name, address, credit card number, credit card expiration date and other information pertinent to the transaction. The consumer usually enters this information using a keyboard, mouse or other input device associated with the communications device. The provider typically requests credit authorization from an authorizing entity, such as a credit card company or bank, and, if such authorization is provided, the transaction is completed.
While this method is effective, it is subject to abuse and fraud. According to recent newspaper articles, the theft of information associated with a person's identity, such as a person's social security number, credit card number, driver's license number or passport number, has become a major problem. In particular, the theft of a person's credit card number is causing significant losses to providers of goods and services over the Internet. For example, in 1999, providers of goods and services over the Internet lost approximately 230 million dollars in revenues because of credit card fraud. Reducing such fraud is an important goal to the future of the Internet.
The use of biometric devices, such as fingerprint analyzers, iris scanners, etc., is known for verifying a person's identity. Biometric devices are not widely used for transactions with consumers, however, because of the additional burdens imposed upon consumers to use such devices. Accordingly, there is a need for a new method and system for using a biometric device to facilitate and authorize transactions with consumers and other parties, particularly transactions conducted over computer networks such as the Internet, in which the burdens imposed upon consumers and other parties to conduct such transactions are not increased.